Question 10OPS Invest PLC issues a 4-year maturity 9% Coupon Bonds to finance a sustainable solar energy project inyield to maturity is now 10%. The par value is $1,000.Requireda. Calculate the price of the OPS Invest PLC Bond (as per the table below )[YearTotalb. Is this a premium, discount or par bond? Why?c. What is the effect of inflation on the bond price?!

Notes: 1. Premium Bond - If the YTM of the bond is less than the bond's coupon rate, then the…

Answered: Question 10 OPS Invest PLC issues a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Aa.6
18. Xcel Using a Spreadsheet to Calculate Bond Values: What is the bond quote for a $1,000 face value bond with an 8 percent coupon rate (paid semiannually) and a required return of 7.5 percent if the bond is 6.48574, 8.47148, 10.519, and 14.87875 years from maturity? (LG 6-2) Face Value 100% 100 100 100 Periodic Coupon Payment 6.48574 × 2 = 12.97148%/2 = 4% Total Payments 8.47148 x 2 = 16.94296 10.519 x 2 = 21.0380 14.87875 x 2 = 29.7575 4 4 4 Required Return 7.5% 7.5 7.5 7.5 The Bond Value Will Be 102.531% 103.094 103.594 104.437
Cese Window Clck Submit to complete this assessment. Question 20 What is the yield to maturity of an 11 percent semi-annual coupon corporate bond, which matures in 17 years, if the bond is selling for $792.14. O 14.28 O 2.14% O 14.32% O 7.74% O None of the listed items is correct Click Submit to compiete this assessment. MacBook Air 23 388 6. T K D V F. %24
QUESTION 1 MaNga Inc. bonds have a current market price of $1,128.87 the bonds have an 9% annual coupon payment, a $1,000 face value, and 12 years left until maturity. The bonds may be called in 3 years at $1,125. What yield might investors expect to eam on these bonds? @7% 4.42% 7.16% 4.33%
What if the company actually spent $95,000 on overhead costs? What causes a company to have overapplied or underapplied overhead? Is this a situation that would eventually need to be resolved? If so, how?
Activity 1 A company has a $1200 face value bond and three years to maturity. The bond carries an annual coupon of 8%. The current market price of the bond is $1050. Required: (i) (ii) (iii) What is the yield to maturity of the bond? Given a discount rate of 10%, what is the intrinsic value of the bond? Should the company hold the bond or sell it?
Question content area top Part 1 (Yield to maturity) A bond's market price is $1,200. It has a $1,000 par value, will mature in 12 years, and has a coupon interest rate of 8 percent annual interest, but makes its interest payments semiannually. What is the bond's yield to maturity? What happens to the bond's yield to maturity if the bond matures in 24 years? What if it matures in 6 years? Question content area bottom Part 1 a. The bond's yield to maturity if it matures in 12 years is enter your response here%. (Round to two decimal places.) Part 2 b. The bond's yield to maturity if it matures in 24 years is enter your response here%. (Round to two decimal places.) Part 3 c. The bond's yield to maturity if it matures in 6 years is enter your response here%. (Round to two decimal places.)
Question 3 A bond has a face value or par value of $1000 and will mature at par in 10 years. The coupon rate is 10% compounded semi-annually. The yield rate is 8% compounded semi-annually. Find the excess of the semi-annual coupon payment over the required semi-annual yield. O a $10 Ob $100 Ос $20 Od $80
QUESTION 15 Suppose that all investors expect that the interest rates for the 4 years will be as follows. What is the price of a 3-year zero coupon bond with par-$1,000? Year 1-Year Forward rate 4.6% 2 4.9% 3 5.2% 4 5.5% O a. $1,000.00 Ob. $866.32 Oc. $858.92 Od. $821.15
Maturity (years) 1 2 3 4 5Zero-coupon YTM 4.6% 5.0% 5.4% 5.8% 6.1% What is the price today of two-year, default-free security with a face value of $1000 and an annual coupon rate of 6%? Does this bond trade at a discount, at par, or at a premium?

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